TSMC Triples Investment in USA with 2nd Fab in Arizona
During groundbreaking ceremony in Phoenix, Arizona on 6 December 2022, TSMC announced that it is raising its investment in the state from USD 12 to 40 billion to build two fabs. This figure puts the project as one of the largest #FDI in the history of the USA.
TSMC Founder Morris Chang presided over the ceremony. In addition to its founder, the top brass of TSMC was also present with Chairman Mark Liu and CEO CC Wei.
US President Joe Biden and US Commerce Secretary Gina Raimondo were the top guests. Other officials included Arizona State Governor Doug Ducey and Phoenix City Mayor Kate Gallego.
Several of TSMC key customers were also in attendance, including Apple CEO Tim Cook, AMD Chair and CEO Lisa Su, Micron CEO Sanjay Mehrotra and Nvidia Chair and CEO Jensen Huang.
The first fab is scheduled to churn out chips by 2024 while the second by 2026. The first fab was designed based on 5 nm technology but might be upgraded to 4 nm while the second fab is earmarked for 3 nm.
When completed, the two fabs will be able to satisfy most of the needs of the US market and mitigate global supply chain disruption in the semiconductor sector. The combined sales revenue from both fabs is forecasted to reach USD 10 billion annually.
During construction, some 10,000 workers will be involved and when operational the two fabs will create a semiconductor ecosystem needing 13,000 highly skilled and well-paid positions.
Most of the technical jobs at the fab will be good-paying jobs with an annual salary averaging USD 125,000 and will not necessarily require a college degree.
US President Biden
The new fab will minimize its environmental impact by adopting #GreenManufacturing with an on-site Industrial Water Reclamation Plant making the plant achieve a near zero liquid discharge.
Brian Deese, Director of the National Economic Council highlighted that the USD 52 billion CHIPS and Science Act was critical in providing the support and the long-term certainty for TSMC to invest in the US.